MASTER 


NO.  94-82284 


2 


COPYRIGHT  STATEMENT 


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Author: 

Martin 


J 


Mac 


I     lllwa 


odern 


of 


Place: 


Minn 


Date: 


[1915] 


^^.S;5Q^^  -  \a 


MASTER    NEGATIVE   # 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


SUSINCS« 

263 

M36 


Martin,  Mac,  1880- 

Modern  methods  of  merchandising,  by  Mac  Martin  of  Min- 
neapolis.   [Minneapolis,  Architect  bulletin  co.,  "1915j 

30  p.    lUus.  (part  col.)     17i«».        $1:68- 


1.  Advertising.        i.  Title. 


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MODERN  METHODS 

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COPVmOHT  1i1B  BY 
MAC   MARTIN  AOVERTISINQ  CO. 
MINNEAPOLIS,  MINN. 


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•RtmMMittnmiitiiiMti'Wi 


I  am  dedicating  tnis 
little  book  to  i^ou.  x 

These  simple  siories 
maijassistW  in  avoid- 
ind  some  or  ifie  nand 
(cuoclcs  others  fiave  x 

encountered-As  ijou 
read  it  I  trust  i)ou  will 

feel  tfiat  lam  talking  to 
^u  and  to  i)ou  alone. 


■■■■■■■■■■■■■■llMaMilliMMMiMtifOTHttn  Mtmitif  I  fimmiiiiimi'inMiMMNi 

*mmnmmmm,mMmmmmmmm^m'.'",':. ■ ^^.. 


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■  •M'lttillMMia 


•  •«•(■•••  •:■«' M •«  IIMltl M  • 


•••*iia 


i 


ADVERTISING  IS  BUILT 
ON  MERCHANDISING 


t  II. w.  an  ■tilt 


•maiwiMitMisiiiiiii 


T  is  now  over  a  decade  since  I  started 
this  business  and  began  to  assist  people 
in  the  preparation  of  their  advertising. 

During  these  years  I  have  seen  many- 
changes  take  place.  Each  year  business 
men  are  gaining  more  respect  for  advertis- 
ing and  greater  knowledge  of  what  it  will 

and  will  not  do. 

• 

The  world  is  learning  that  advertising,  to 
be  effective,  must  be  linked  closely  with 
merchandising — must  be  built  on  a  thor- 
ough knowledge  of  the  different  methods 
of  merchandising. 

What  I  have  learned  of  advertising  and 
its  relation  to  merchandising  has  come 
through  experience  with  many  classes  of 
business.  It  has  come  through  constant 
study  and  hard  knocks. 

As  the  years  have  gone  by  I  have  sought 
out  the  paths  of  least  resistance — I  have 
learned  to  avoid  many  things. 

Perhaps  the  stories  of  some  of  these 
experiences — the  failures  as  well  as  the 
successes — may  be  of  profit  to  you  in  your 
business. 


5] 


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INTENTIONAL  SECOND  EXPOSURE 


'Ij: 


ci    •  ,. 


V-       ,^ 


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C:. 


ADVERTISING  IS  BUILT 
ON  MERCHANDISING 


T  is  now  over  a  decade  since  I  started 
this  business  and  began  to  assist  people 
in  the  preparation  of  their  advertising. 

During  these  years  I  have  seen  many- 
changes  take  place.  Each  year  business 
men  are  gaining  more  respect  for  advertis- 
ing and  greater  knowledge  of  what  it  will 
and  will  not  do. 

The  world  is  learning  that  advertising,  to 
be  effective,  must  be  linked  closely  with 
merchandising — must  be  built  on  a  thor- 
ough knowledge  of  the  different  methods 
of  merchandising. 

What  I  have  learned  of  advertising  and 
its  relation  to  merchandising  has  come 
through  experience  with  many  classes  of 
business.  It  has  come  through  constant 
study  and  hard  knocks. 

As  the  years  have  gone  by  I  have  sought 
out  the  paths  of  least  resistance — I  have 
learned  to  avoid  many  things. 

Perhaps  the  stories  of  some  of  these 
experiences — the  failures  as  well  as  the 
successes — may  be  of  profit  to  you  in  your 
business. 


5] 


.y...]f " 


IT  DOES  NOT  PAY  TO 
GO  OFF  HALF  COCKED 


«••*••••••• 


Ik  TOT  so  long  ago  a  wholesale  druggist 

\!  conceived  the  idea  of  putting  cold 
cream  in  stick  form  in  a  specially  designed 
tube  which  could  be  carried  conveniently 
in  a  lady's  pocket  book. 

He  not  only  had  plenty  of  money  to 
invest  in  advertising  and  a  completely 
equipped  plant  ready  to  produce  the  prod- 
uct in  large  quantities,  but  through  years 
of  fair  dealing  he  had  built  up  a  trade 
among  some  3000  dealers  who  would  stock 
an  article  on  his  recommendation  alone. 

The  article  seemed  so  meritorious  that 
its  maker  thought  all  he  would  have  to  do 
to  make  a  fortune  would  be  to  apply  the 
magic  wand  of  advertising. 

An  advertising  campaign  calling  for  an 
expenditure  of  $100,000  was  talked  of  and 
success  seemed  so  certain  that  several  news- 
paper and  magazine  advertisements  were 
negotiated  for  before  I  was  called  in  to 
prepare  the  advertising. 

Everything  looked  so  favorable  on  the 
face  of  it  that  I  suppose  some  people  won- 
der why  I  did  not  make  up  a  list  of  pub- 
lications of  known  value,  write  and  illus- 
trate some  strong  advertisements,  and 
start  spending  his  money  for  him  right 
away. 

[  6 


XMAC  M,ARTIM  ADVERTISING  COMPANYX 


The  maker  had  told  me  all  that  he  thought  I 
needed  to  know  about  the  product,  and 
my  records  showed  many  things  about  the 
markets  and  the  best  advertising  media, 
yet  I  did  not  feel  that  I  had  sufficient  in- 
formation. 

I  had  visited  the  factory  and  watched  the 
product  being  made,  but  I  wanted  to  go 
into  drug  stores  and  watch  it  being  sold.  I 
also  wanted  to  question  women  who  had 
used  it. 

The  druggists  told  me,  as  an  outsider, 
many  things  that  they  would  not  have  told 
to  the  maker  or  to  his  salesmen. 

Some  of  the  women  who  tried  it  were 
enthusiastic  over  it.  They  bought  it 
quite  readily  at  first,  but  after  careful  in- 
vestigation I  found  that  they  very  seldom 
bought  it  the  second  time. 

One  test  after  another  brought  me  face 
to  face  with  the  fact  that  it  was  only  a 
novelty,  that  it  was  not  a  ''repeater''  and 
that  it  would  not  be  wise  to  stake  any 
great  amount  of  money  on  it. 

As  there  was  very  little  of  the  "repeat  *' 
element  in  the  product,  the  day  would 
come  that  the  manufacturer  would  find, 
just  when  his  advertising  should  bring  the 
greatest  returns,  that  he  had  sold  every 
possible  customer  in  his  market  once,  and 
they  wouldn't  buy  again. 

Four  other  things   I   discovered  which 


7] 


XMODERN  METHODS  OF  MERCHANDISING X 

this  manufacturer  had  evidently  overlooked  • 
first  the  name  chosen  for  the  product  could 
not  be  protected  as  a  trade-mark ;  second  the 

P^'"^'f"i^-r^^  ^hi^h  the  article  'was 
scented  did  not  seem  to  appeal  to  the  class 
of  people  most  likely  to  buy;  third,  the 
article  which  was  being  sold  to  consumers 
at   50    cents    was    being   compared    with 

selling  at  25  cents;  and  fourth,  because  the 
manufacturer  was  giving  the  department 
stores  special  discounts,  they  were  selling 
the  50  cent  article  at  39  cents  one  day  and 
42  cents  the  next  day— both  prices  beine 
lower  than  local  drug  stores  could  afford 
to  meet.     The  result  of  this  cutting  in 
pnce  was  that,  while  the  local  drug  stores 
stocked   the   article   very   readily   in   the 
beginning  on  the  recommendation  of  the 
manufacturer,    they   refused   to   re-order 
because   to  meet   competition   they  were 
practicaUy  compelled  to  sell  the  article  at 
a  loss. 

The  manufacturer  might  have  gone 
ahead  and  spent  his  $100,000  in  advertis- 
ing and  learned  these  things  from  expe- 
rience as  some  others  have  done. 

But  when  these  facts  were  laid  before 
lum  he  appreaated  the  value  of  a  prelimi- 
"^  ^"jestigation  by  one  experienced  in 


[8 


IT  DOES  NOT  PAY  TO 
STOP   ADVERTISING 


Tl  HEN  you  have  once  decided  that 
f  f  ^  your  product  is  good  enough  to  ad- 
vertise, continuous  advertising  is  the 
cheapest  investment.  Most  would-be  ad- 
vertisers stop  digging  just  when  they  are 
about  to  reach  **pay  dirt.*' 

Records  show  that  the  death  rate  in  this 
country  is  17  in  every  1000  and  the  births 
are  32  per  1000.  Even  if  your  advertising 
was  the  greatest  the  world  had  ever  seen 
a  stop  of  only  ten  years  would  mean  nearly 
one  third  of  the  people  able  to  read  and 
write  who  never  saw  your  advertising  to 
say  nothing  of  the  remaining  two  thirds 
who  would  probably  long  ago  have  for- 
gotten you. 

A  man  once  asked  me  how  long  I  thought 
would  be  necessary  to  test  the  advantages 
of  advertising  for  one  of  his  products. 

Before  answering  I  asked  him  **How 
often  does  the  same  consumer  buy  your 
class  of  product?" 

He  told  me  they  re-ordered  a  supply 
every  three  or  six  months. 

If  we  advertised  continuously  for  six 
months  we  would  then  just  have  a  chance 
of  catching  each  buyer  on  this  next  order. 
That  was  certainly  the  shortest  time  pos- 
sible for  a  test. 

[  10 


i 


\^ 


m 


XMAC  MARIIM  ADVERTISING  COMPANY  X 

We  started  the  advertising,  but  at  the 
end  of  four  months  he  wanted  to  quit. 

I  reminded  him  of  his  estimate  and  asked 
the  privilege  of  sending  a  letter  to  a  select 
list  of  his  prospects.  In  this  letter  I  put 
a  return  postal  on  which  one  of  the  ques- 
tions asked  was,  **How  often  do  you  order?*' 
The  returned  postals  showed  that  while 
the  shortest  time  was  three  months,  as  my 
client  had  said,  the  longest  was  3  years, 
and  the  average  was  11 J  months. 

Two  other  questions  asked  on  this  post 
card  were:  **In  what  quantities  do  you 
order?'*  and  **If  you  were  ordering  to-day, 
what  brand  would  you  probably  specify?" 
The  answers  to  these  two  questions  in- 
dicated a  volume  of  business  that  would 
have  been  equal  to  a  150%  increase  if  the 
buyers  had  been  in  a  position  to  order  at 
that  time. 

J.  George  Frederick,  Editor  of  "Adver- 
tising &  Selling,*'  says:  **One  can  con- 
cede the  possibility  of  a  very  brief  cessation 
of  advertising  without  harm — ^just  as  it  is 
possible  to  sling  a  pail  of  water  over  one's 
head  without  spilling,  because  of  momen- 
tum. But  as  soon  as  the  speed  is  slackened 
the  momentum  is  broken,  and  out  spill  the 
whole  contents.  The  performance  of  many 
* 'advertisers"  is  as  crude  as  the  over- 
cautious effort  of  a  child  to  swing  the  pail  of 
water :  he  is  constantly  spilling  and  losing. 


11  ] 


»» 


k>  .tJt 


XMODERN  METHODS  OE  MEKCHANDLSINCX 


II 


i 


= 


Chart  lb  Show  The  Repeat 

Of  Regular  Customers 

Tales  the  total  ctuttamers  ap- 
pearing an  your  ledger  this  year 
and  divide  them  into  classes. 
One  chart  may  he  prepared  for 
number  of  customers  and 
another  for  the  volume  of  busi- 
ness. It  is  more  important  to 
hold  old  business  than  it  is  to 
obtain  new.  Advertising  that 
is  directed  towards  getting  only 
new  customers  is  performing 
Uss  than  half  of  its  duty. 


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HiiiNHiitiiiiiiiiiiiiifiitftftttftfnniitttfliiitttffiiiftiiiitfiiiiiftfiwttMiiiiiiitiiiJ 

!        HOW  TO  DECREASE 
I  SELLING  COST 


!JC 


iiiiiinitiitiiMiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiHfiiiiiiiiiiitiiiiiiiiiitMiiiiiiiiiiiiiiHi 


lA 


USINESS  is  like  war.  It  is  a  struggle 
-  for  commercial  existence,  and  only 
those  who  use  the  most  modem  methods 
can  expect  to  survive. 

Suppose  you  and  a  certain  competitor 
are  each  making  annually  1,000,000  boxes 
of  your  products.  Let  us  consider  that  you 
each  have  been  spending  $25,000  annually 
in  advertising  and  $75,000  on  your  sales- 
men, or  $100,000  to  sell  1,000,000  boxes. 
That  is  a  selling  cost  for  each  of  you  of 
10  cents  a  box.  Let  us  also  estimate  that 
you  each  make  a  net  profit  of  $50,000  or 
5  cents  a  box. 

Now  suppose  your  competitor  decides 
to  put  forth  an  extra  effort  to  increase 
his  volume  and  to  popularize  his  brand 
by  more  advertising.  A  salesman  can 
take  an  order  for  10  dozen  just  as  easily 
as  he  can  for  one  twelfth  of  a  dozen  if  the 
demand  has»  been  created. 

Let  us  suppose  that  next  year  or  the 
year  after  your  competitor's  advertising 
appropriation  is  increased  to  $125,000, 
making  a  total  selling  cost  of  $200,000,  but 
in  doing  this  the  advertising  has  so  in- 
creased the  volume  that  he  sells  4,000,000 
boxes.     His   selling  cost  is  now  5  cents 


13] 


iL«""<l^  ''"-•fi* 


XMODERK  METHa)S  OF  MERCHANDISING X 

against  your  10  cents.  He  not  only  makes 
four  times  the  gross  profit  that  you  make, 
because  he  sells  four  times  as  much,  but 
he  makes  another  profit  of  5  cents  for  every 
box  sold,  because  he  can  sell  at  half  of 
your  expense. 

How  will  this  affect  you?  You  may  not 
notice  the  effect  while  times  are  good  and 
you  and  your  competitor  maintain  the 
same  price.  But  let  a  crisis  come,  or  let 
your  competitor  see  that  he  can  increase 
his  volume  still  further  by  lowering  his 
price  to  the  consumer  and — ^well,  he  can 
nm  you  out  of  business  any  time  he  wants 
to.  There  will  be  no  * 'combination  in 
restraint  of  trade''  either.  He  holds  you  in 
the  hollow  of  his  hand.  You  are  beaten  any- 
time he  takes  a  notion  to  say  the  word. 
Through  advertising  he  has  cut  his  cost 
to  a  place  where  he  can  make  a  good  profit 
and  still  sell  at  a  price  below  your  actual 

CX)St. 

This  illustration  is  more  than  a  theory. 
It  is  happening  today  in  many  classes  of 
business.  When  Hart,  Schaffner  &  Marx 
began  to  advertise  the  house  was  doing  a 
business  of  $1,500,000.  Ten  years  later 
this  had  increased  to  $15,000,000. 

An  interesting  comparison  of  selling  costs 
and  amounts  spent  for  magazine  advertis- 
ing by  four  ready-to-wear  clothing  manu- 
facturers was  recently  compiled  by  Printers 
Ink. 

[14 


XMAC  MARTIN  ADVERTISING  COMPAMYX 


Magazine 
Advertising 

Selling 
Cost 

Hart,  Schaffner  &  Marx 
B.  Kuppenheimer  &  Co. 
Samuel  W.  Peck  &  Co. 
Alfred  Benjamin 

$85,000 
49,000 
29,000 
24,000 

2i  to  3% 

4% 
6% 

7% 

The  Baltimore  Bargain  House,  another 
concern  doing  a  business  of  over  $15,000,- 
000,  sells  by  mail  for  about  2|%,  against 
a  selling  cost  of  from  7  to  10  per  cent  of  its 
competitors. 

The  Postal  Life  of  New  York  sells  life 
insurance  by  advertising  at  $10  per  $1000, 
compared  to  an  average  cost  throughout 
the  life  of  the  policy  of  from  $22  to  $35  when 
business  is  secured  by  agents. 

Cutting  the 

Cost  of  Obtaining  Distribution 

FROM  $5.00  TO  $1.27 

The  mere  fact  that  you  spend  money  in 
advertising  is,  of  course,  not  the  main 
thing.  The  question  is:  **Are  you  get- 
ting the  most  for  your  money?'' 

Several  months  ago  I  was  asked  to  con- 
sider the  planning  of  some  advertising  for 
a  manufacturer  of  a  new  product.  An 
advertising  agency  had  been  placing  his 
advertising,  but  evidently  had  not  studied 
his  methods  of  merchandising.     His  article 

15] 


*r>  ;ia  .i^.^fl.. 


iMiODERM  MIT«:QDS  O^  MERCHANDISINCX 


cost  the  consumer  25  cents  a  box.  He  had 
very  wisely  instructed  his  salesmen  in 
introducing  the  product  not  to  over-stock 
the  dealers.  The  salesmen  found  that, 
talk  as  they  would,  they  very  seldom  were 
able  to  do  better  than  put  the  product  in 
on  a  consignment  basis  and  then  only  in 
about  35  per  cent  of  the  stores  they  called 
on.  Until  I  suggested  it  this  manufacturer 
•  had  never  made  an  estimate  of  how  much 
it  cost  per  dealer  to  get  this  distribution. 
To  his  surprise  it  figured  up  about  $5  per 
dealer. 

A  very  simple  change  in  his  merchan- 
dising plan  enabled  him  to  get  100%  dis- 
tribution at  a  lower  expense  than  the  old 
method.  In  each  town  he  entered  his 
newspaper  advertising  started  on  the  same 
day  that  a  letter  and  a  package  was  sent 
to  all  dealers  in  that  town.  The  letter 
told  exactly  what  the  advertising  consisted 
of  and  carried  a  return  post  card  ordering 
a  window-trim.  The  package  contained 
a  little  counter  display  rack  showing  a 
half  dozen  boxes  which  were  given  to  the 
dealer  as  a  first  stock  free  of  charge. 

When  we  estimated  the  cost  we  found 
that  by  this  method  we  obtained  com- 
plete distribution  over  night,  at  an  expense 
of  $1.27  per  dealer,  against  the  $5.00  which 
had  been  paid  before. 


[  16 


INTENTIONAL  SECOND  EXPOSURE 


cost  the  consumer  25  cents  a  box.  He  had 
very  wisely  instructed  his  salesmen  in 
introducing  the  product  not  to  over-stock 
the  dealers.  The  salesmen  found  that, 
talk  as  they  would,  they  very  seldom  were 
able  to  do  better  than  put  the  product  in 
on  a  consignment  basis  and  then  only  in 
about  35  per  cent  of  the  stores  they  called 
on.  Until  I  suggested  it  this  manufacturer 
had  never  made  an  estimate  of  how  much 
it  cost  per  dealer  to  get  this  distribution. 
To  his  surprise  it  figured  up  about  $5  per 
dealer. 

A  very  simple  change  in  his  merchan- 
dising plan  enabled  him  to  get  100%  dis- 
tribution at  a  lower  expense  than  the  old 
method.  In  each  town  he  entered  his 
newspaper  advertising  started  on  the  same 
day  that  a  letter  and  a  package  was  sent 
to  all  dealers  in  that  town.  The  letter 
told  exactly  what  the  advertising  consisted 
of  and  carried  a  return  post  card  ordering 
a  window-trim.  The  package  contained 
a  little  counter  display  rack  showing  a 
half  dozen  boxes  which  were  given  to  the 
dealer  as  a  first  stock  free  of  charge. 

When  we  estimated  the  cost  we  found 
that  by  this  method  we  obtained  com- 
plete distribution  over  night,  at  an  expense 
of  $1.27  per  dealer,  against  the  $5.00  which 
had  been  paid  before. 


[16 


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J  KNOW  of  no  class  of  business — (unless 
perhaps  it  is  that  of  a  burglar)  which 
cannot  be  benefited  by  some  form  of  ad- 
vertising. 

The  modem  way  is  to  use  salesmen  as 
"closers'*  only,  leaving  the  **opening''  to 
be  done  at  a  lower  expense  through  ad- 
vertising. A  salesman's  time  is  too  valu- 
able and  people  prefer  to  make  up  their 
minds  too  slowly  to  waste  a  salesman  on 
the  preliminaries  which  can  be  told  more 
quickly  and  shown  more  clearly  on  the 
printed  page. 

A  friend  of  mine  made  an  investigation 
which  showed  that  his  salesmen  sold  60% 
to  70%  of  the  people  called  on  before  the 
goods  were  advertised,  and  that  after  4 
months  advertising  the  same  salesmen  sold 
from  80%  to  90%. 

A  jobber  asked  my  advice  about  pushing 
the  sale  of  one  article  in  his  line  on  which 
he  was  doing  a  business  of  $79,000.  The 
selling  season  was  3  months,  in  which  time 
his  sdesmen  called  on  the  trade  not  more 
than  twice  and  then  they  had  many  other 
items  to  take  orders  for.  No  one  of  his 
salesmen  cost  him  less  than  $2  a  call.  A 
series  of  mailing  pieces  was  planned  to 
support  the  salesmen  and  call  on  each  one 

[  18 


II 


XM„AC  MARllN  ADVhOTlSlNC  COM,mNYX 

of  his  prospects  once  every  two  weeks, 
making  eight  calls  during  the  season  in- 
stead of  the  salesman's  two.  This  adver- 
tising, including  stamps  and  addressing, 
cost  the  jobber  31i  cents  a  prospect, 
or  a  little  over  a  nickel  a  call.  At  the 
end  of  the  season  he  found  that  on  an 
investment  in  advertising  of  $939,  the 
salesmen  showed  an  increase  on  that  item 
of  $52,000.  His  sales  had  risen  from 
$79,000  to  $131,000.  By  increasing  his 
selling  expense  only  8%  and  putting  that 
8%  into  advertising  his  salesmen  were  able 
to  show  an  increase  of  65%. 


19] 


!.■>  A.' 


IM    flJft    VU'* 


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If  fiiititif  iitiitim  • 


HOW  ADVERTISING 
CREATES  GOOD  WILL 


I 


I  ONTINUOUS  advertising  does  two 
things.  It  cuts  costs  and  it  increases 
the  element  of  good  will  in  a  business. 
Salesmen  can  create  good  will,  but  the 
good  will  they  create  is  usually  only  in  the 
minds  of  those  whom  they  actuaJly  sell. 
Many  people  who  do  not  own  automobiles 
greatly  assist  the  sale  of  certain  cars  because 
the  manufacturers,  through  advertising, 
have  bought  the  good  will  of  the  entire 
country. 

No  matter  how  perfect  your  equipment, 
your  business  cannot  live  without  that 
intangible  something  the  business  world 
calls  good  will.  I  have  often  been  sur- 
prised to  see  how  readily  the  confidence  of 
the  public  responds  to  frank  honest  adver- 
tising. Less  than  six  months  after  I 
ran  a  special  newspaper  campaign,  planned 
solely  for  the  purpose  of  developing  this 
element  of  good  will,  for  a  public  ser- 
vice corporation  capitalized  at  $4,375,000.00 
the  owners  were  offered  and  accepted  $200  a 
share  for  their  stock,  although  before  the 
advertising  started  it  was  quoted  at  $113  a 
share. 

Another  idea  of  the  dollars  and  cents 
value  of  good  will  created  through  adver- 
tising can  be  gained  from  a  study  of  the 

[  20 


i 


J 


XM,AC  MA'RTI:''. .^: :.  ..^TISINC  ■CDMM.NYX 

following  table  showing  the  good  will 
value  represented  by  the  business  of  some 
of  America's  leading  advertisers. 


Name 

Capital 

Assets 

Good  Will 

Per 

Cent 

Sears,.Robuck  &  Co. 

Studebaker  

May  Dept.  Store. . , 

Underwood 

Loose- Wiles  Bis.  Co. 

$48,500,000 
43,500.000 
20.000,000 
13.500.000 
13.000.000 

$60,768,949 
56.467.143 
21.377.229 
15.476.785 
15.247.152 

130.000.000 

19.807.277 

14.343.957 

7.995,720 

7.970,543 

49.3 
35.0 
67.0 
52.2 
51.6 

Advertising  Is  a  Form  of 
Investment 

Many  people  evidently  consider  adver- 
tising as  some  form  of  gambling  and  never 
think  of  estimating  the  possible  results  as 
they  would  those  of  any  other  form  of  invest- 
ment. Much  advertising  is  successful  in 
spite  of  itself.  All  of  it  could  be,  if  men 
would  look  before  they  leap.  I  do  not  recall 
ever  having  met  a  man  who  said  advertising 
had  been  unsuccessful  in  his  business  that 
on  inquiry  it  did  not  develop  that  the  fault 
lay  in  his  merchandising  methods,  the 
quality  or  price  of  his  goods,  the  length  of 
time  in  which  he  expected  returns,  lack  of 
knowledge  of  consumers,  or  some  other 
perfectly  simple  thing  that  he  could  have 
avoided  in  the  beg^inning. 

R.  G.  Dun  &  Company  reports  84%  of 
the  failures  in  this  country  are  among  con- 
cerns which  do  not  advertise. 

21  ] 


1 


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X  MODERN  METHODS  OF  M  ERCHANDISING  X 


Chart  showing 
Division  Of  Market 

Be/ore  Miinuding  your  saU» 
possibilities  in  any  market  we 
proceed  to  analyze  that  market 
to  determine  the  total  possible 
customers  and  the  share  you 
and  each  of  your  competitors 
hold.  Such  information  is 
usually  quite  difficult  to  obtain, 
but  when  it  is  secured  it  is  then 
easy  to  determine  where  to  put 
the  most  sales  effort. 


I 


'■■—■iiiii 


i  HOW  MUCH  YOU  SHOULD 
j  SPEND  FOR  ADVERTISING 


WHinmimninnni  •■•■•■  wtiwMiJMti  n  tmmi^mima 


N  fact  I  think  most  advertising  might 
Lbe  considered  as  memory  insurance. 
Except  in  cases  of  very  seasonable  articles 
we  can  never  tell  just  when  any  one 
prospect  is  thinking  of  buying.  If  you 
can  feel  certain  that  each  of  your  pos- 
sible customers  will  remember  your  brand 
favorably  when  he  goes  to  buy  you  have 
a  distinct  advantage.  It  is  worth  so  much 
a  buyer  per  year  to  insure  your  product 
in  the  memories  of  yotu:  possible  customers. 

Coca  Cola,  with  its  $1,000,000  annual 
advertising  appropriation,  spends  in  this 
country  of  100,000,000  population  approxi- 
mately a  penny  a  person  a  year  for  such  in- 
surance. I  know  a  man  who  pays  $2  a  year  a 
prospect  as  memory  insurance.  Yet  as  there 
are  only  1000  concerns  with  which  he  can 
do  business  profitably  his  advertising 
costs  him  but  $2000  a  year.  When 
Coca  Cola  makes  a  sale  the  exchange  is 
a  nickel.  When  the  other  man  makes  a 
sale  the  sum  involved  runs  into  the  hundreds 
and  thousands  of  dollars.  One  can  afford 
to  pay  more  per  unit.  The  other  can 
afford  to  pay  more  in  the  total. 

So  it  is  with  all  businesses.  Each  can 
afford  to  spend  a  different  amount  and  each 
must  employ  different  methods. 

23  ] 


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XMODERN  METHODS  O^ 


'T }f " 

.1 


NDISINCX 


>^ 


You  and  I  live  in  the  20th  Century  and 
we  have  at  our  command  all  of  the  complex 
machmery  of  modem  merchandising. 
Tcn'^^l^^^   country   alone   there   are   over 
750,000  retail  stores  of  different  character- 
istics   selling    manufactured    products    to 
ultinaate  consumers.     It  is  my  business  as 
an  advertising  agent  to  know  the  number 
ot  distributors  in  different  markets  and  to 
develop  the  cheapest  methods  to  influence 
them  to  handle  your  goods.     There  are 
over   22,000    publications   in   the    United 
btates,  each  of  different  value  to  different 
concerns,  clamoring  to  carry  your  message 
to  those  who  buy. 

My  company  represents  no  one  particu- 
lar method  of  advertising.     My  associates 
and  myself  have  spent  our  lives  studying 
ways  to  influence  people  to  buy.     We  are 
designers  and  writers,  but  we  are  first  of  all 
merchandising   men.     We    know    how    to 
make   illustrations   which   will    appeal    to 
people,  and  we  know  the  best  classes  of 
cuts   to  use  for   different   purposes.     We 
are  experienced  in  buying  printing  and  our 
clients  say  that  we  add  just  that  touch 
to   their   printed    matter   which    gives  it 
distinctive  individuality.     It  is  our  prov- 
ince to  know  the  value  of  different  media, 
different  markets  and  different  methods, 
and  to  plan  advertising  campaigns  which 
obtain  the  greatest  results  for  the  least 
money. 

[24 


|IMIIIIMIHIMillllll|IIIIIHIIIIIIIll»IMIIItHtliM«IWMf«Mtl«l»t«tl*»iMI#IM«ttlMHI 

WHAT  YOUR  ADVERTISINGi 
SHOULD  COST 

illl4ll|.|il*llittlllitHitMttlt»tilllltllMtllMlllli.MtllittttlllttMtltMWIIIItllll'IIWttilW 


« 


X> 


1  ANY  business  men  say:  **My  busi- 
1  ness  is  so  small  that  I  can't  afford 
to  employ  an  advertising  agency." 

But  when  they  begin  to  figure  up  at  the 
end  of  the  year  they  find  that  they  have 
spent  more  than  they  would  have  spent  if 
a  definite  plan  had  been  laid  out  by  a  com- 
petent advertising  organization. 

The  other  day  I  was  looking  over  the 
ledger  of  a  manufacturer  who  in  a  year 
had  spent  $2750,  for  what  his  bookkeeper 
listed  as  advertising.  When  we  began  to 
separate  the  items  this  manufacturer  was 
surprised  to  find,  (although  he  is  a  most 
careful  buyer  of  all  of  his  supplies  and  will 
not  spend  a  penny  foolishly  if  he  can  help 
it,)  that  over  $1200  of  this  expense  was 
for  exhibits  at  county  fairs,  church  pro- 
grams, and  other  items  which  had  nothing 
at  all  to  do  with  reaching  his  market  or 
his  possible  buyers. 

Just  turn  now  to  the  part  of  your  ledger 
headed  advertising  and  see  if  it  shows  any 
such  condition. 

It  is  not  so  much  the  amount  you  spend 
as  the  way  you  spend  it.  And  that  is  our 
first  concern  when  you  employ  us  as  your 
advertising  agent,   because  any  successes 

25] 


lit 


XMOURM'  METHODS  OF  ME'RC''H' WmsTVCX 


which  we  have  ourselves  made  in  the  past 
have  only  come  from  making  others  success- 
ful. 

What  Our  Service  Costs 

Some  people  have  the  mistaken  idea  that 
the  charges  of  an  advertising  agency  are 
variable  and  like  a  doctor's  bills,  differ 
with  sizes  of  pocket  books.  Our  prices 
are  th^  same  to  all  and  it  is  our  policy  always 
to  submit  estimates  in  advance. 

Our  charges  for  space  in  publications 
are  at  the  lowest  card  rates  quoted  by 
the  publications  themselves.  We  give 
you  oiu-  complete  service  for  just  what  it 
would  cost  you  to  buy  the  space  alone.  We 
can  afford  to  do  this  because  the  publica- 
tions grant  to  recognized  agencies  a  com- 
mission which  cannot  be  obtained  by  ad- 
vertisers. They  give  us  this  commission 
because  they  recognize  our  service  to  be 
of  value  to  them  in  decreasing  the  advertis- 
ing death  rate,  and  in  building  permanent 
business  for  them. 

Special  illustrations,  booklets  and  fol- 
low-up literature  as  well  as  engraving  and 
printing  are  at  regular  market  prices. 

We  make  no  charge  for  consultation  and 
are  always  glad  to  go  over  the  merchan- 
dising and  advertising  problems  of  anyone 
who  is  interested. 


[26 


I  ,f 


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11 


••■•• 


THE  OUTSIDER'S 
VIEWPOINT 


DOCTOR  cannot  diagnose  his  own 
I  I  case.  Very  few  successful  advertisers 
attempt  to  write  their  own  advertising. 
Over  90%  of  the  advertising  in  this  coun- 
try is  prepared  by  advertising  agents. 
If  it  were  not  the  most  economical  method 
agencies  would  not  long  exist. 

My  own  advertising  is  the  hardest  ad- 
vertising I  have  to  write.  I  can  do  it  if 
I  stay  by  it  long  enough,  but  I  find  that  I 
am  so  much  involved  in  the  details  of  my 
business,  wanting  to  tell  too  much  or  too 
little,  that  it  takes  me  about  four  times  as 
lopg  to  prepare  presentable  copy  for  my 
own  business  as  it  does  for  one  of  my  clients. 
If  I  could  employ  someone  else  to  write  my 
own  advertising  I  would  do  so.  But  I 
would  have  to  go  to  a  competitor.  You  have 
a  distinct  advantage  over  me  in  this  respect. 

Then  an  outsider  can  tell  many  things 
that  one  on  the  inside  hesitates  to  say 
about  himself. 

The  following  are  excerpts  from  a  few  ex- 
pressions of  people  who  have  had  expe- 
rience with  our  methods. 

**You  deserve  a  great  deal  of  credit  for 
your  clear  cut,  businesslike  methods  of 
advertising.     In  this  age  of  hot  air  artists, 

[  28 


Y 


r 


I 


XMAC  MARTIN  ADVERTISmC  COMPANYX 

it  is  refreshing  to  find  a  man  who  deals  in 
facts.  Your  letters  have  impressed  me 
more  favorably  than  anything  I  have  ever 
received  from  any  advertising  man,  and 
inspire  me  with  confidence  in  your  ability 
not  to  waste  money.'' — Henry  C.  Garrott, 
President  Garrott  Candy  Co, 

Here  is  another  written  in  quite  a  dif- 
ferent vein,  by  one  of  our  old  clients,  Mr. 
J.  N.  Stewart,  Advertising  Manager  of  the 
Northern  Pacific  Railway*  who  each  year 
buys  nearly  a  half  a  million  dollars  worth 
of  advertising  for  this  great  railroad: 

**When  *Mac'  takes  a  crack 

At  a  booklet  or  a  placque 

You  may  look  for  something  nifty 

With  a  style  that's  sure  unique. 

He  is  chaste  in  his  taste 

And  so  handy  with  the  paste 

That  you'll  find  but  few  can  touch  him 

Far  and  wide  tho'  you  may  seek. 

"A  dash  of  pink — some  purple  ink 
And  he'll  really  make  you  think 
That  Dame  Nature  overlooked  a  bet 
In  painting  up  the  rose. 
Maxfield  Parish  may  be  garish 
But  his  art's  not  half  so  rarish 
As  the  touch  that  only  *Mac'  can  give 
To  his  booklets  and  his  prose." 

Another  by  Thomas  Dreier,  Editor  of  "As- 
29] 


'•^iwn.. 


» 


XMODERN  METIQDS:  OF  MERCHANDISING X 

sociated  Advertising",  the  official  organ  of 
Associated  Advertising  Clubs  of  the  World: 

"In  Minneapolis  lives  Mac  Martin. 
Mac  Martin  believes  that  a  man's  first 
duty  is  to  his  family;  his  second  to  his 
business;  and  his  third  to  his  city.  But 
he  also  knows  that  the  man  who  does 
effective  work  for  his  city  does  most 
effective  work  for  his  business,  and  there- 
fore for  his  family. 

"I  have  talked  with  many  business  men 
about  Mac.  They  all  swear  by  him. 
They  know  that  he  is  on  the  square,  that 
his  judgment  is  good,  that  he  never  goes 
off  half  cocked,  and  that  he  is  always  eager 
to  do  what  is  best  for  the  greatest  number. 

'*He  holds  the  respect  of  big  business  men, 
is  liked  personally  by  those  who  work  in 
his  office,  is  popular  at  his  own  breakfast 
table,  and  is  just  boy  enough  to  say  that 
he  is  just  started.*' 


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